Misconceptions Regarding the Federal Reserve

A Letter to the Editor

SUBJECT MATTER: Writer responds to federal reserve 'misconception,' Cumberland Times-News, Tues., October 8, 1991.

SYNOPSIS: Letter to the Editor by local political candidate. Demonstrates increasing public awareness of constitutional limitations and current economic effects of debauched currency. (NOTE: References to names deleted in web version to protect privacy of the authors.)

I must take exception to my so called misconception of the Federal Reserve System by [name withheld] in the Readers Commentary published in the Times-News on 7-23-91.

Mr. ***** you are right about the court cases that have been filed. But the reason they have never reached trial stage is because the special interests that benefit from this unconstitutional money system have the money and influence to prevent court precedings.

"Government often promotes the goals of small special interest groups to the detriment of the public at large. the result is that the politician (backed by big bankers money) will support the special interest program, even though that program may not be economically desirable from a social point of view!" (101 Economics-Textbook McConnell)

I agree the Federal Reserve Banks are not responsible for the over three trillion dollar national debt directly. Congress uses the Federal Reserve as a credit card or a crutch and their chicken hearted attitude towards tax increases to pay for their enormous spending programs have provided them another way to buy votes back home.

They simply pass the costs onto future generations and the working people get taxed through paying interest on the debt Congress creates.

The international bankers love this because they get billions of dollars of unearned interest from the taxpayers.

Presidents Andrew Jackson and Thomas Jefferson opposed this unconstitutional money scheme because it transformed wealth from the people to the international bankers who won the unconstitutional central bank.

This is why President Jackson destroyed the central bank during his administration.

Two money systems presently exist in the U.S. One system is publicly owned based on using non-interest bearing U.S. notes. The other system is privately owned and unconstitutional interest bearing Federal Reserve notes. (Article 1, Sec.8 Clause 5, U.S. Constitution).

Yes, Mr. *****, the banks are required to maintain a portion of their deposits as cash reserves in the form of U.S. note deposits in reserve banks. And the reason we see very few non-interest bearing U.S. notes in circulation is because thay are "non-interest bearing" and kept in bank vaults out of circulation.

In December, 1913; with a barequorum present, Congress passed the 16th Amendment to the Constitution (Federal Income Tax) and also passed the unconstitutional "Federal" Reserve Act. The 16th Amendment was the vehicle to take money out of the wokring people's pockets to pay for the unearned interest that the Federal Reserve Act creates and this transfers wealth from the working taxpayer to the rich owners of the unconstitutional "Federal" Reserve who do nothing to earn the money because nothing is backing their privately owned Federal Reserve Notes.

This is how they have the unending supply of money to pay for the transfer of wealth, created by the middle income taxpayer, to the super rich.

My assertion that the Federal Reserve System is the main reason local governments are in a financial bind is true because the stock owners of the "Federal" Reserve System are raking in all the profits instead of the money going to the people.

If we would have Congress repeal the Federal Reserve Act and eliminate this unconstitutional debt interest system, there would be no national debt and over 300 billion dollars that the taxpayers pay annually on just the interest on this debt, which is unearned interest, created by the liberal finance big spenders could be used to fund a public health program for all Americans, infrastructure for bridges and road repairs, school system, local government expenses and senior citizen needs.

Mr. ***** you say whether the system is legal, illegal, Constitutional or unconstitutional you can be sure if you read Article I, Section8, Clause 5 and Article 1, Section 10, of the U.S. Constitution that Congress in Dec., 1913, abrogated their Constsitutional oath by passing the "Federal" Reserve Act without a Constitutional amendment ratified by three-fourths of the states consenting.

You may or may not agree that the Federal Reserve Board is staffed by appointments rather than by elections, but the U.S. Constitution empowers only Congress to control the value of the dollar.

This divorced monetary policy means the people lost their Constitutional right to control the money system through their elected representatives thereby giving an unelected monopoly of international bankers control of the money system instead of the citizens of the U.S. as defined by the U.S. Constitution.

Mr. ***** how do you get additional money into the system as the population increases? You get it only through debt and these ownersof the "Federal" Reserve get a royalty on every additional dollar added to the system through unearned interest!

Mr. *****, you say you sleep better at night because Chairman Greenspan and the Board-of-Governors of the Federal Reserve (who have control over whether we have recession or prosperity by raising or lowering discount rates of (interest) and completely independant of the elected officials) rather than the likesof Ted Kennedy, the "Keating Five", etc. If you recall "Keating Five" was in trouble because of the crooked bankers campaign funds influence and I would like to refer you to the current BCCI international bankers world wide scandal of the century. Personally, I don't sleep too well at all.

Thank You

[name withheld to protect author's privacy]


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